Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman appeared together on CNBC in September to announce a mammoth $100 billion deal that was poised to usher in a new chapter for the booming artificial intelligence industry.
Five months later, no contract has been signed and no money has changed hands. More concerning to investors, the two companies are seemingly at odds.
The Wall Street Journal on Friday reported that the negotiations between the companies were "on ice" after some within Nvidia expressed doubts about OpenAI's business model. It's been a major topic of conversation in AI since November, when Nvidia warned in the risk factors of its quarterly filing that, "There is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity or other potential investments."
Despite the reported friction, Nvidia and OpenAI still need each other.
Altman has said OpenAI requires a massive number of Nvidia's AI chips to hit its growth targets for revenue, while Huang relies on customers like OpenAI to create services that wow customers and continue driving sales of its costly systems.
Soaring demand and industry hype drove Nvidia's market cap past $5 trillion at its peak in October, though the stock is down 15% from its high, pushing the valuation to $4.4 trillion. OpenAI, meanwhile, was valued on the private market at $500 billion late last year and is reportedly eyeing a valuation of over $800 billion as it pursues another round of cash.
"We are looking forward to Sam closing it and he's doing terrifically," Huang told CNBC's Jim Cramer on Tuesday. "And we will invest in the next round. There is no question about that."
Nvidia first invested in OpenAI in October 2024, as part of a $6.6 billion funding round.